Simon
Milroy, managing director, commented: “Intersecting the silver lead
zinc ore again at depth demonstrates that this high-grade zone remains
open both at depth and along strike.”

Assays show 20.6% lead up to 35.10% lead

The
original assay method for KJCD048 could only read up to a maximum of
20% lead, and the nine samples re-assayed that were previously reported
as >20% returned lead grades ranging from 20.6% lead up to 35.10%
lead.

This lifted the lead grade of the 18 metre interval from a
previously reported 15.66% lead up to 19.63% lead, and as a result the
Copper Equivalent grade increased to 11.3% from 10.3%.

Details of KJCD045

In
hole KJCD045 the massive galena mineralisation has a very sharp contact
at the hanging wall and appears to replace a limestone unit within
mudstones, siltstones and schists.

It appears to be a distinct
style of mineralisation adjacent to the more common Marshall-Reward
style copper mineralisation that was intersected higher up in the hole.
The limestone has been altered to a carbonate-magnetite rock containing
sphalerite and pyrite.

Analysis

The importance of today's results for KGL Resources is that they support the continuation of the resource at depth, and are
just 90 metres north along strike and 50 metres down dip from KJCD048,
announced last week.

Last KJCD048 received 'Drill hole of the
Day' in a note from UBS Securities and distributed by Bell Potter, and
now due to the now higher assayed lead levels, the hole has become even
better with an increase in the Copper Equivalent to 11.3%.

Key catalysts for KGL Resources in the near-term include additional drilling before the end of
December, which is planned along strike and to the north and south,
which is open at depth and along strike.

KGL Resources has a market cap. of under $14 million. With over $10 million in cash
at the end of September 2013, the company's enterprise value is light at
around $4 million.

Proactive Investors maintains a share price target of $0.13 to $0.15 for KGL Resources in the next 6 to 9 months.